Federal Finance Minister Mathias Cormann says Central Queensland businesses and primary producers are already benefitting from the Small Business Tax Package announced in the Budget in May.
In reply to a question in the Senate today, the Minister said businesses and primary producers were looking to tax offset to bolster and improve their businesses in the region, which has been struggling from the downturn in coal prices.
Senator Cormann quoted well-known livestock agent Ken McCaffrey as saying a number of property owners are ordering new fencing and getting started on boosting their water storage capabilities.
“Thanks to some welcome showers of rain in parts of central, western and southern Queensland recently, they may well have a little more water to store,” Senator Cormann said.
“Overall, he says the fact that farmers can fully deduct the cost of water facilities and fencing in the year they are purchased, and deduct the cost of fodder storage assets over three years, has meant not just a boost for those farmers themselves but also related businesses in rural communities who will be supplying the fencing materials and other equipment required.”
Senator Cormann also said Rockhampton accountants had reported many businesses are taking up the $20,000 immediate tax deduction by bringing forward the acquisition of items that were previously only on their wish list.
“These small businesses will use the purchased assets to generate income and boost struggling regional economies,” he said.
The Minister’s comments were welcomed by Rockhampton-based Federal MPs Michelle Landry, Member for Capricornia, and Senator Matt Canavan.
“The small business package has been well received in the Capricornia. We promised to help small business and we are delivering on that promise ,” Ms Landry said.
“Both small business owners and farmers have likewise been telling me that this is the most significant measure they have had access to from any government is long time.”
Senator Canavan said he was pleased to see primary producers benefit from the change to tax-deductibility for water facilities, fencing and fodder storage.
“This will help farmers invest in necessary infrastructure on-farm and, along with stronger demand for cattle in particular and improved prices, generate increased spending in rural communities in Central Queensland in particular.”